WASHINGTON, D.C. — September 13, 2024 — National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement on today’s White House announcement and fact sheet that outlined executive actions to curtail de minimis shipments in addition to other key measures on enforcement and domestic procurement.
Statement by NCTO President and CEO Kim Glas:
“We appreciate the administration’s actions announced today, which represent a step forward in helping mitigate the impact of the de minimis provision.
“We have called on the administration to use its existing executive authorities to limit the severe damage to our industry created by the de minimis loophole. Today, the administration announced rulemaking to limit de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the Section 301 tariffs. This is an important, common-sense reform and critical first step. We amplify the need to expedite rulemaking to the fullest extent possible and appreciate their strong engagement with our industry. The administration also announced requirements for additional information on de minimis shipments and other enforcement measures.
“Further, the administration underscored the need for a comprehensive solution beyond this action announced today – underscoring the magnitude of the problem, and the inability to effectively enforce our laws with the flood of de minimis packages coming in daily and the need for an urgent solution. We share that same sense of urgency. We are calling on Congress and the administration to work together to immediately close this disastrous loophole once and for all.
“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE is experiencing severe demand destruction fueled by de minimis shipments flooding our market with cheap, illegal imports because of this nonsensical outdated trade loophole. De minimis has facilitated illegal and forced labor products to our doorsteps at the cost of American jobs and our manufacturing sector.
“The flood of boxes coming into the United States under an outdated 1930s trade provision rewards Chinese e-commerce platforms and cheaters with a free trade agreement. It makes detecting illegal products effectively impossible. De minimis hides a black market of goods and puts people and consumers at risk. Half of the 4 million de minimis boxes a day are estimated to be textile and apparel goods – which is why we greatly appreciate the administration calling for the global exclusion of trade sensitive items – including textiles and apparel – from de minimis treatment given the sensitivity of the sector and rampant cheating. If enacted and effectively enforced, this will help significantly bring down the volume of these goods to better detect fentanyl and other illicit and dangerous products and help U.S. Customs and Border Protection (CBP) do its important work in the field with our law enforcement officers. Time is of the essence because there is so much at stake.
“We also underscore the need for Congress and the administration to immediately eliminate this disastrous loophole once and for all in the coming weeks. We will continue pressing for comprehensive reform given the urgency of the crisis – not just for our industry which has lost 19 plants this last year — but for all industries and consumers and families impacted by this loophole.
“Finally, we applaud the administration’s directive on developing a plan for immediate textile and apparel procurement. This is critical to our industry, and we stand ready to supply more goods to the U.S. government. We also appreciate the administration’s stepped-up textile and apparel enforcement efforts over the last few months and their ongoing engagement with this critical industry. Today they announced their efforts to date. We want to thank Department of Homeland
Security Secretary Alejandro Mayorkas, DHS, and the CBP team for prioritizing this at such a critical time.”
Posted: September 13, 2024
Source: National Council of Textile Organizations (NCTO)
